BI.marketing Mgmt

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PREFACE

The “ Baba Handicrafts “ – Manufacture & Exporter of gifts & Handicrafts ( A government

Recognized Export House ) is situated at station road, jodhpur.

It is totally an export company. Its position is very good in handicrafts of iron material. And

good position in Rajasthan and India. Total production is depend on designing. This firm’s

products are too good, fine art and attractive antiques.

They are the fast leading Export Company.

When it comes to handicraft exporters in the Suncity. Who can forget raj handcrafts. Which

are into the exports since 2006. The company mainly is into production of Woodenhandicrafts, cup, shield, handicraft, trophy, momento. The company is exporting products to

USA, Canada, Spain, Italy and UK. It is a award winner company,

The main customer for handcraft are

• 1) Forign investor

• 2) high profile person

The handcraft item are mostly useful for gift item.

The raj handcraft have sufficient staff for their three type of work:-

1. factory work

2. Office work

3. logistic work.

The staff for all work are to supportive and Workable at all condition.

At the and I can only give the my gratitude to and their staff for their help and Support for

completing this project work.

(B.B.A Final)

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Objective of Study

1. To study the handicraft industry of India.

2. To study the recessionary effect on the handicrafts industry at Jodhpur.

3. To understand the complete procedure and requirements of Indian Handicraft

Industry.

4. To analyze the different product of Indian Handicraft Industry.

5. To find the potential in existing market.

6. To measure the satisfaction level of the existing customers and to make the customers

aware about the new products offered by Handicraft Industry of Jodhpur.

RESEARCH METHODOLOGY

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Market Research is a systematic gathering recording analyzing data about problems relating

to the marketing of product and services. It is the process of a systematic and in depth study

an area of investigations. Supported by the collections, completion and end presentation of

relevant details for further utilization. It involves scientific analysis that would result in the

formulation of new theories, the discovery of new techniques, and a modification of old

concepts or rejections of an existing theory. Marketing research plays a vital role of making

available the right at right time, right place and to the right person for use in decision making.

It is very difficult to find out information about the company’s strategies and polices. Thus,

research methodology is a way to systematically solve the research problem. It includes:

1. To know the research problem.

2. To specify the specifications.

3. To review literature.

4. Data verifications.

5. Data analysis.

INTRODUCTION TO THE INDUISTRIES

HANDICRAFTS

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Handicrafts are unique expressions and represent a culture, tradition and heritage of a

country. The Handicraft Industry is one of the important productive sectors. Various attempts

have been made to define this broad and diversified industry. The following definition strives

to cover diversity and complexity of Handicraft Industry.

Defining Handicrafts:

Definition According to United Nations Educational, Scientific and Cultural Organization

/Information Technology Community (UNESCO/ITC) International Symposium on “Crafts

and the International Market: Trade and Customs Codification”, Manila, Philippines, October

1997:

Handicrafts can be defined as products which are produced either completely by hand or

with the help of tools. Mechanical tools may be used as long as the direct manual

contribution of the artisan remains the most substantial component of the finished product.

Handicrafts are made from raw materials and can be produced in unlimited numbers. Such

products can be utilitarian, aesthetic, artistic, creative, culturally attached, decorative,

functional, traditional, religiously and socially symbolic and significant.

Definition according to Govt. of India:

Handicraft can be defined, which is made by hand; should have some artistic value; they may

or may not have functional utility.

Indian Handicraft Industry

Crafts are unique expressions that represent a culture, tradition and the heritage of a country.

India is well known for its exotic crafts legacy and tradition. It is the land of art and crafts, a

country of rich culture, history and traditions. A wide range of Indian Crafts represents thediversity of crafts tradition in India. Variety of designs and finishes are available in Indian

market that reflects excellent artistic skills of craftsmen are great in demand globally. India is

one of the important suppliers of handicrafts to the world market. The Indian handicrafts

industry is spread all over the country in rural and urban areas. Thousands of skilled artisans

are engaged in crafts work.

Handicrafts Industry is playing a major role in the development of Indian economy. This

sector is economically important from the point of low capital investment, high ratio of value

addition, and high potential for export and foreign exchange earnings for India.

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As per the latest updates, there are more than 23 million craftspeople in India today engaged

in the growth of Indian handicrafts industry. Few more details:

• Second largest employment sector in India, second only to Agriculture.

• More than 23 Million craftspeople.

• 63% of exports turnover.

• 9 items dominate exports of handicrafts.

These nine items which have extra edge over other products include art metal ware, wood

ware, hand-printed textiles, hand-knotted and embroidered textiles, leather goods, stoneware,

carpets and floor coverings.

THE IMPORTANCE OF HANDICRAFTS:

The Cultural Importance:

Handicrafts play very important role in representing the culture and traditions of any country

or region. Handicrafts are a substantial medium to preserve rich traditional art, heritage and

culture, traditional skills and talents which are associated with people’s lifestyle and history.

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economy of both developed and the developing countries equally. The 90-95% of the total

industrial products of the world is produced in small workshops run by less than 100 people.

For instance, Japan, which is at the peak of the economic development, has considered 84%

of it’s industries as small and medium scale industries. In countries such as India and China,

handicrafts are as high as the mechanized products in quality and volume, and are a major

source of their foreign earnings. These countries are focusing on the development of

handicraft industry, in order to strengthen the economy. The Indian handicrafts industry is

highly labor intensive, cottage based and decentralized industry. The industry is spread all

over the country mainly in rural and urban areas. Most of the manufacturing units are located

in rural and small towns, and there is huge market potential in all Indian cities and abroad.

Handicraft industry is a major source of income for rural communities employing over six

million artisans including a large number of women and people belonging to the weaker

sections of the society.

The Handicraft sector is highly creative sector and produces large variety of crafts products.

This industry is localized segment of the domestic and international market. In India the

production of craft products are done on both large and small scale. Because of low capital

investment people can start their business on small scale. Through this flexibility the demand

and supply can be managed.

Though Indian Handicraft industry is considered a cottage industry, but it has evolved as one

of the major revenue generator over the years. There has been consistent growth of 15% over

few years and the industry has evolved as one of the major contributor for export and foreign

revenue generation.

There is huge demand for the Indian Handicraft products in both national and international

market. To match the demand and supply with quality, there is need to have greater

technological support and innovativeness with the uniqueness in industry.

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Handicrafts - Key Facts

• India’s rich cultural diversity and heritage provides a unique and huge resource for

developing craft products.

• The Indian Handicraft Industry is showing continuous growth rate of 20% every year.

• Handicrafts industry is one of the important segments of decentralized sector in India.

• Major parts of industry operates in rural and semi urban areas throughout the country

and has potential Indian and International market with around 67000 exporters to tap the

market.

• According to the national census of handicrafts, undertaken by the National Council for

Applied Economic Research the value of handicrafts produced last year were of

Rs.26,213 Crore.

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• This Industry provides huge employment opportunities to artisans that include women

and people belonging to backward and weaker society. This is one of the major source

of income there.

• The Indian Handicraft Industry is a $100 billion industry worldwide.

• India’s contribution in world market is 1.2%

• The total exports of crafts items: - Rs. 13412.92 Crore.

• Industry’s share in India's exports:- 1.51 %

• In spite of having diversified products, some part of Indian market are still untapped

and market is price sensitive.

• Products are high priced in big and metro cities, which are beyond, reach of people

belonging middle and lower middle class.

• Craft producers have to compete on price, quality and delivery for different segments.

• There is poor promotion for craft products in national market.

• There is lack of awareness about new traditions and among craftsmen and there is need

of technological support and training.

Indian Handicraft Industry contributes very important role in Indian economy. For the proper

functioning and operation of industry it is very essential to have some policies and regulation in place.

In India, the Ministry Of Textile is responsible for the formulation of policy, planning, development,

export promotion and regulation of the Handicraft Industry. There are several other bodies and

organizations which help to formulate and execute these policies. All policies should be implemented

for the greater development of the whole industry so that it can help to strengthen the economy.

Industrial Policy:

There are no restrictions regarding location for establishing manufacturing units.

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All producers of handicrafts are exempt from obtaining Industrial License to manufacture. The

delicenced undertakings, however, are required to file an Industrial Entrepreneur Memoranda (IEM) in

Part 'A' with the Secretariat of Industrial Assistance (SIA), and obtain an acknowledgment. No further

approval is required.

Associations Organisations

All India Handicrafts Board:

The All India Handicrafts Board was originally set up in 1952 to advise the Government on problems

of handicrafts and to suggest measures for improvement and development. The Board was also required

to study technical, marketing, financial, organizational, artistic and other aspects of handicrafts and to

formulate plans on these lines. Its function also included advice and assistance to the state

Governments for planning and executing schemes for the development of handicrafts.

State and Union Territories:

Each State and Union Territory has a department looking after the development and promotion of

handicrafts. Many states including, Arunachal Pradesh, Daman , Diu, Delhi and Goa have public sector

corporations for marketing handicraft products. A few state corporations dealing with small-scale

industries and other products have taken up marketing and export promotion of handicrafts. Besides

taking up direct exports, these corporations are also expected to guide and help private exporters.

Central Corporations/Bodies:

(a) The Handicrafts and Handlooms Export Corporation of India (HHEC) is a subsidiary of the State

Trading Corporation of India, and came into existence in June 1962. The corporation's policy in the

field of direct exports is designed to develop new markets and expand traditional ones and to introduce

new products suitable to the needs of the consumers abroad. The Corporation undertakes and executes

wholesale orders, conducts retail sale operations through retail shops abroad, and participates and sells

in major exhibitions of the world. HHEC also helps private exporters by affiliating them as business

associates. It undertakes a number of publicity and promotional measures for the export of handicrafts

and handloom products.

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(b) The Central Cottage Industries Corporation, Pvt. Ltd. is a registered society which had taken over

from the Indian Cooperative Union. It runs the Central Cottage Industries Emporium (CCIE) at

Janpath, New Delhi, the premier sales organization in Indian handicrafts. The CCIE has branches at

Bombay, Calcutta, Madras and Jaipur. CCIE has grown by leaps and bounds in the successive years.

(c) The All India Handloom Fabrics Marketing Cooperative Society Ltd. ,(56-58 Mittal Chambers, 5th

Floor, Nariman Point, Bombay, India.), is sponsored and supported by the All India Handloom Board.

This Cooperative runs handloom houses in Bombay, Delhi, Madras, Calcutta, Ahmedabad, Chandigarh,

Hydrabad, Ernakulam, Vadodara and Vishakapatnam. It also has branches abroad in Lagos, Singapore,

Kualalumpore, New York, Mauritius and Hamburg.

All India Associations:

India has All India Organizations for three of its most popular handicrafts items; hand printed textiles,

carpets and zari. These Associations serve as a platform for consultations among the manufacturers and

exporters on one hand and the Handicrafts Board on the other. The Board uses these Associations to

disseminate information useful to crafts.

(a) All India Carpets Manufacturers Association; Post Box No. 63, Bhadohi, District Varanasi, Uttar

Pradesh, India.

(b) All India Federation of Zari Industry; Safe Deposit Chambers, Surat, Gujarat, India.(c) All India Textile Handprinting Industries Federation, 1106 Prasad Chambers, Swadeshi Mill Estate,

Bombay, India.

Exim Policy

Exim Policy pertaining to the handicraft Sector:

All manufacturers of handicrafts are exempt from obtaining an industrial license to manufacture. There

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are no restrictions regarding the location of the manufacturing unit

Characteristics of Indian hand crafted items for exports:

• They are quota free and neutral to fiber content or composition, barring 100% silk.

• They include Garments, Made-up and clothing accessories.

• Are produced in cottage industries.

• Should not have zippers.

• Must be ornamented using any one or more of the following Indian folk styles.

• Hand painting, Hand printing, Batik, Tie and Dye, Kalamkari.

• Hand embroidery, Crocheting.

•

Appliqué work of sequins, wooden or glass beads, shells, mirror, ornamental motifs of textilesmaterials.

• Extra wrap of welt ornamentation of silk, art silk or zari threads.

• Should satisfy the dimensional aspects.

MAJOR DISTRIBUTION CHANNELS

Exports of handicrafts is distributed through five major channels:

1. Wholesalers

2. Importers/distributors

3. Commission agents/sales representatives

4. Department stores

5. Mail-order 6. Internet sales

7. Tele-shopping

The individual channels are described in detail in the following-

Wholesalers:

Besides offering wide range of goods to retailers for direct sales, this channel also supplies large

quantities of individual articles. They are very particular in maintaining consistency in the kind of

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products and their quality. One of the distinguishing features of wholesalers is to provide distribution

and storage facilities. Specialized wholesaler’s deal in sales to retailers as well as to final consumers.

They maintain high quality standards and but have a narrower and in-depth range of arts and crafts.

Importers/distributors:

Most Indian giftware and handicrafts companies use importers/distributors to market and sell their

giftware and handicrafts lines. They buy and sell on their own account. Thus, the companies take

advantage of the distributor's expertise, his sales force and his existing distribution channels.

Distributors call on giftware and handicrafts retailers, purchasing groups and supermarkets. The

distributors' mark-up varies depending on the giftware and handicrafts item, but at least 50 percent.

While the mark-ups vary according to the distributor; they usually also depend on the exclusivity of a

product and on its competitiveness in the overall giftware and handicrafts market.

Germany hosts more than 45,000 giftware and handicrafts retailers. Several retailers import directly

from the United States and sell to the German customer. Usually these are small companies looking for

items new to the market and handling small orders only.

Commission agents:

Commission agents provide Indian companies with direct access to the German market and direct

control. Independent commercial agents are normally working on a 15 percent commission and operate

on a regional basis. They concentrate on specialist retailers, purchasing groups and department stores.

Commission agent contracts are based on stringent EU and German regulations. An Indian firm

wishing to appoint an agent should make sure that such standard contracts meet its expectations. In

order to facilitate market entry efforts by the agents their initial commission is often a few percent

higher than the "usual" commission. These additional payments are to reimburse the agent for

substantial advertising and any special efforts facilitating the new product's market entry.

Department Stores:

Indian companies interested in establishing business contacts with major department stores, mail-order

houses and retailers may also choose the direct approach. Department stores in particular, prefer to

deal directly with manufacturers. Their buyers are very specialized and only handle a limited range of

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products. At some occasions department stores also buy through independent commercial

agents. Quite often they have their own buyers as well as a few agents that usually work

with them and who know their assortments. If a department store decides to import a

particular giftware and handicrafts item, it places bulk rather than small orders.

Mail Order:

On an average, each German consumer buys products totaling to DM 500 each year from mail-order

houses. There are about 200 mail order companies in Germany. In Europe, Germany is the largest

mail order market, followed by Great Britain and France. The total European market volume for mail

order products is estimated at approximately DM 90 billion. Of the 20 major mail order companies in

Europe, 12 have their headquarters located in Germany. Among them are the world's largest mail order

companies: Otto Versand in Hamburg and Quelled Schickedanz AG & Co. in Fuerth. In addition,

several German mail order companies operate in other European countries, as well.

Internet Sales:

Germany will become market leader among the EU countries with regard to sales over the Internet by

the year 2000. It is anticipated that by then German electronic sales, which are estimated to reach a

volume of DM 500 billion worldwide in 2000, become second in the worldwide ranking after the

United States and before Japan. A typical German Internet user and a major German mail-order

publication is between 20-39 years old, is highly educated and earns more money than the average

German consumer. This age group consists of about 4.5 million Germans. Seventy percent of these

consumers are male. Already today, the Internet is a major sales channel for German mail-order houses.

Teleshopping:

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The 6 million craft persons who are the backbone of Indian Handicraft Industry as provided

with inherent skill, technique, traditional craftsmanship but that is quite sufficient for primary

platform. However, in changing world market these craft persons need an institutional

support, at their places i.e. craft pockets for value addition and for the edge with other

competitors like China, Korea, Thailand etc.

COMPANY PROFILE

BABA INTERNATIONAL– (BRIEF PROFILE)

FIRM AND PROMOTERS

Firm:

The firm namely Baba International will be a proprietorship firm and will function from

Jodhpur under the concerned person’s name (myself).

Promoter:

Decision for entrepreneurship is promoted by 5 major reasons. These are:

Moreover, it is an Idea/Innovation that leads towards Entrepreneurship i.e.; idea comes

first and entrepreneurship follows afterwards.

ESTABLISHED

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Personal

Characteristics

Personal

Environment Personal Goals

Business

EnvironmentIdea

Decision to Behave

Entrepreneurially



• Year 1994

FOUNDER

• ASHISH JAIN

• ATUL JAIN

PLANT SIZE

• 60,000 sq ft.

PRODUCT

• ANTIQUE PRODUCTION

• WOODCRAFT HANDICRAFT

• DECORATIVE FURNITURE

• IRON HANDICRAFT

• OCASSIONAL FURNITURE

EMPLOYEES

• 198 Direct employee and more then 150 on contract basis

TURNOVER

•

US$ 4.85 MILLION

CERTIFICATION AND MEMBERSHIP

• ISO 9001: 2000 CONCERN

• MEMBER OF JODHPUR HANDICRAFTS EXPORT ASSOCATION

• MEMBER OF JODHPUR INDUSTRIES ASSOCIATION

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INTRODUCTION TO BABA INTERNATIONAL:

Welcome to the world of BABA INTERNATIONAL unique collection of more than 10,000

furniture, utility & Gift Articles inspired by the modern trends around the world with a very

distinct Indian touch.

Its belief in customer satisfaction: BABA INTERNATIONAL housed in

1, 40,000 Squire Feet well equipped production floors with updated plant and machinery,

More than 500 field experts working for NACH under 12 experienced departmental heads

bring out some of the best example of innovative craftsmanship.

Its capacity to move over 400 containers every year to big and reputed customers is

demonstrated, with great attention and perfection to the last detail (Be it finishing, packing or

even choosing best transport solution for each container)

BABA INTERNATIONAL 8TH Street II Phase Basni, Jodhpur (Raj.) INDIA has been in

business since 1994. They are continuing to grow and develop new product lines.

NACH is one of the leading company in India. It is a manufacturer of handicraft items

include mainly wooden and iron. Now days the name "BABA INTERNATIONAL" is

symbol of good quality and international specification. This concern on one of the best and

well-organized concern not only in Rajasthan but also in India.

Their organization is recognized as "trading House" & An ISO 9001: 2000 Concern by the

Government of India. They are engaged in the Manufacture / Export of various types of

Handicraft items.

The company has separate departments for Marketing Finance, Production, Polish, packing

& Research & Development. And all the departments are well equipped with latest

technology, imported machines & skilled manpower with ISO Certification (9000: 2001).

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Their main products are Wooden Furniture, Iron Decorative Items, Combination of both

Wooden and Iron Products are also manufacturing.

The number of items in which we are dealing runs into thousand such as Tables, Almirah,

Cabinets, Boxes,

Chairs, Sofa-Set, Beds, Candle Stands, Magazine holders, Gift articles and moreover of

various makes and designs.

MAIN PRODUCT LINE: -

• Iron Furniture

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• Antique Reproduction

• Wooden Furniture

Wooden Products

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http://www.noble.ws/noble/comming_soon.htm




• Decorative Furniture

Christmas Products

BABA INTERNATIONAL Factory & Showroom:

8th Street, II phase Basni,

Jodhpur 342-005 (INDIA)

Tel # 91 291 2742002

Fax # 91 291 2746350

Showroom:

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B Road, Near Gole Building Circle.

Sardarpura, Jodhpur.

Tel # 91 9413120388

VARIOUS DEPARTMENTS OF BABA INTERNATIONAL

Let me first describe the fore-most components of an organization.

FINANCE DEPARTMENT

Headed By: Mr. Vijay Bhandari

Finance is backbone of any business. Financial management is concerned with the planning, budgeting, and controlling of financial activity in the organization.

The Major work of financial department as follows:

• Financial planning of the organization.

• Bookkeeping and maintain the accounts.

(Purchases, Sales, Receivables and other activities).

•Preparing of Cash-flow statements.

•Paying salary, wages, and bills.

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BI

PURCHASESSTORE PRODCUTIO

NPACKING FINANACEEXPORT



•Paying different loans, interest and Government bill in time.

PURCHASE- DEPARTMENT

This is further divided in

(a) RAW MATERIAL- Headed by:

Mr. Mahesh Purohit

Mr. Shayam Ji Jangid

To start in production department first we have to procure the raw material for

wooden and iron handicrafts products. It is considerable that raw material may be either semi

– finished, parts and sub – parts the raw material consist of : -

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Wood-

1. Sheesham

Color-

Cream, Brown and

Red.

Available-

U.P., Punjab, Hariyana

2. Babool Red Gujarat

3. Mango Yellow and Cream Gujarat



(b) Miscellaneous / Consumable Material

This sub Department is

Headed by Mr. Jaynti Shah

Assisted Mr. Muzahid

After wood, the miscellaneous / consumable raw material used in the manufacturing,

finishing the products, they are to be purchased and then are utilized by different people in

large and small quantity. Even a tiny thing, which is unavailable to, could stop a work from

carrying away.

A computerized system of records level is being set which shows the product description

units reorder level quantity to be ordered and suggesting the supplier with previous rates and

date.

It helps the purchase officer to order and thus purchase the goods in order to maintain a

consistency in the manufacturing system. It also helps to check out the items in the store not

used for long time and items, which are used extensively. It helps the purchase officer to

order either in bulk or minor quantity.

In this way it not only helps in running work smoothly but also cut's purchase price and saves

on costs thus increasing profitability.

STORES

There are various different stores for

• Raw-material - Wood

- Consumable

- Etc.

• Semi-finished goods

• Finished goods

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• Etc.

There is no formal store executive; different storekeepers manage them. In a store

person comes with his demand list issued by the concerned department, the items are

issued to him and copy of it is sent to purchase department. They are super-vise by

different people on rotational basis. Generally it is weekly / Monthly arrangement.

DATA COLLECTION TOOLS

Depending upon source data collection is classified under two categories:

1. Primary Data

2. Secondary Data

PRIMARY DATA

The data which are originally collected by an investigations or agency for the first time for

any time for any statistical investigations used by them in the statistical analysis are termed as

primary data.

SECONDARY DATA

The data which have already been collected and processed by some agency or person and

taken over from these or used by any other agency for their statistical work are termed as

secondary data.

The methodology used for the data collection was based on personal observation &

information gathered through various sources like Internet, annual reports etc. The

information so received was properly analyzed, interpreted to the right conclusions.The research study has been carried out by adopting the following methodology:-

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1. The review of available literature was made to develop the conceptual framework of

Handicraft industry.

2. The study has been based on primary & secondary data both.

Research Design:

After having defined the marketing research problem and developed a suitable approach,

attention must be given to the formulation of a detailed research design, which will provide

pertinent information. According to (C.R. Kothari, 2004) when defining research design, he

presents it simply as ‘the framework for a study used in order to guide the collection and

analysis of data’.

According to Kothari, there are two major types of research design:-

1. Exploratory research--concerned with the development of initial hunches or insights.

2. Conclusive research--intends to verify insights and help decision makers to select a

Specific course of action.

Even though exploratory and conclusive research has distinct purposes, they both consist of

the same research components. They differ only in terms of the degree of formalization and

flexibility of the components illustrated in table below:

Exploratory Research:

According to Kothari, the primary purpose of exploratory research is to shed light on the

nature of situation and identify any specific objective or data needs to be addressed through

additional research. Exploratory research is the most useful when a decision maker wishes to

better understand situation, identify relevant courses of action or gain additional insights

before an approach can be developed. In general, exploratory is appropriate to any a problem

about which little is known.

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Exploratory studies are distinguished by flexibility concerning the methods employed.

Literature searches, experience surveys and study of selected studies are some commonly

used approaches (Kothari, 2004).An effective way of doing exploratory research is to seek

out and talk to individual with expertise related to the situation being investigated.

RESEARCH INSTRUMENTS

Selected instrument for Data Collection for Survey is Questionnaire.

SAMPLE SIZE

The survey is conducted among 30 respondents.

Simple statistical tools have been used in the present study to analyze andinterpret the data collected from the field. The study has used percentile method

and the data are presented in the form of diagrams.

SCOPE OF THE STUDY

Access the Market Potential of Handicraft Industries with the help of a survey

conducted on a total of 30 Respondents.

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Facts & Findings

In small units only 14% units go for outsourcing

46% of units are making decorative items, which need skilled labor

Max. no. of units are making only traditional items, they are not making any new

innovative items like- rotating dining table, decorative coffee grinders, CD racks etc

60% of units are facing skilled labor problem and 20% of units are facing raw

material (wood) price increase problem

60% sales generate in September to December month

63% of units sale their products by direct sale or by phone

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• The total exports in the year 2008-09 has been the highest with respect to initial

handicrafts exports in the year 1994-95.

• The graph shows a decline in the exports in the year 2008-09,due to world wide

recession.

The above figure shows the country wise share of art metal ware in 2008-

09.

The above figure shows the country wise share of wood ware in 2008-09.

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The above figure shows the share of miscellaneous handicrafts in 2008-09.

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Problems of Indian handicrafts

The mass-produced goods are steadily replacing utility items of daily use made by

craftsmen.Limited public awareness of the cost-effectiveness, functionality and range of craft

products.

The urban consumer does not have access to many of the handicrafts products.

Crafts people are bound in their struggle for survival to money-lenders, traders or middlemen

for credit and raw materials and they are obliged to sell their products to them at a minimal

price decreasing their interest towards the traditional arts and crafts.Women struggling to

enter the economic mainstream should be encouraged to use craft to become wage earners,

provided they are shown how to get access to the market.

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LIMITATIONS

The study could not be made that comprehensive due to time constraints. Some

customers feel uncomfortable to reveal some personal information relating to

income, Privacy etc. it might have happened that some more essential

information could have been collected.

Time constraint.

Biases and non-cooperation of the respondents.

Financial constraint.

Geographical selectivity in study limiting to Delhi city only.

People are not interested in giving personal opinion

LIMITATIONS OF THE RESEARCH

1. Small sample size may sometimes result into erroneous results.

2. Diminutive Time Limit.

3. Different Industrialist have different kind of effect and it is difficult to recognize all.

4. The information related to Handicraft industry seems to be contradictory to the actual

behaviour of the industrialist.

5. Not having proper knowledge of the location of the organizations.

RECOMMENDATION AND SUGGESTIONS32



Each firm should participate in trade fairs

They should do innovation in wooden handicraft products like; rotating dining table,

decorative coffee grinders, CD racks & wooden hangers etc

Regarding skilled labor problem they should give them wages according to their work

Provide them performance appraisal and bonus on Diwali.

On February 12, 2010, India's Export Promotion Council for Handicrafts (EPCH), had

approached the Government with a Pre-Budget Memorandum, which featured a series of

relevant recommendations. These included:

• Reintroduction of Income Tax exemption for all handicrafts products under Section

10BA of I.T. Act, 1961.

• Extension of Service Tax exemption for merchant exporters.

• Announcement of four more mega clusters namely Jodhpur (Rajasthan), Mysore-

Channapatna (Karnataka), Puri (Orissa) and Ferozabad was also there among other

recommendations. - This, according to EPCH, is necessary for the development and promotion of handicrafts from these regions.

• Service Tax exemption for traders participating in international shows, who are

subjected to pay in foreign currency (including Indian rupees).

• Extension of the Service Tax exemption on Membership Fee of the Council beyond

March 31, 2010.

Incidentally, in 2009, Reserve Bank of India (RBI) had extended the incentive from

September 30, 2009 till March 31, 2010 in order to extend its support to the labor-intensive

sectors like textiles, carpets, handicrafts etc. which were badly affected by the demand slump

in the US and Japan following the worldwide economic downturn.

Concerns expressed by EPCH were shortly echoed by the Union minister of state for

commerce & industry Mr. Jyotiraditya Scindia, who urged the Union Finance Minister Mr.

Pranab Mukherjee to offer cheap dollar credit at 1% over Libor (London Interbank Offered

Rate) to exporters, against the present 3.5% over Libor. He has also asked the finance

33

http://handicraft.indiamart.com/

http://handicraft.indiamart.com/materials/textile.html

http://handicraft.indiamart.com/

http://handicraft.indiamart.com/materials/textile.html



ministry to extend the 2% interest subvention scheme on rupee export credit and benefits

enjoyed by EoU (Export Oriented Units) units.

All these demands are extremely logical since handicrafts alone accounts for 1.5 per cent of India's total exports, but this highly labor-intensive, decentralized industry, concentrated

mainly in rural and semi-urban areas, is yet to get the desired boost. Moreover, the sector is

still reeling under the pressures of recession and is yet heave a sigh of relief. So now, it is

time to see how the Government reacts to these demands, and how far it succeeds to meet the

expectations of the handicrafts industry players in India.

REFRENCE SECTION:

34

http://exim.indiamart.com/indian-budget/budget-news.html

http://exim.indiamart.com/indian-budget/budget-news.html



Appendices:

CONCLUSION

Handicraft Industry of Jodhpur is one of the biggest industries of Jodhpur dealing in export

With a yearly export of more than 1000 Cr. Although looking at the trend of export figures

we Can see a distinct growth in this industry but on the other hand looking at the potential of

the Market this growth is not satisfactory,. The total export of handicraft from India that is

around 10000 Cr. Jodhpur’s share is only 10%.

The main observations of our study are some issues like –

1. labor problem,

2. unwillingness towards investment in machinery,

3. and inability to participate in foreign trade fairs.

I have identified a number of problems of this industry and these problems have decreased

the potential. Still this industry is not investing in machinery even after knowing that the

main concept behind success in this industry is bulk supply and this is the point where other

countries exceeds.

By going for mechanization exporters will not only be able to supply in bulk, uniformity in

goods will also be their and time consumption in manufacturing will also go down which will

decrease the operating cycle, One more reason is unprofessional approach towards work:

most of the exporters are no going for marketing and even if any firm is going then also they

are sending only their relatives there instead of any professional.

Most of the marketing people, which are from their family itself only go and meet the

existing customers, nobody is searching for new buyers extensively, The entire journey just

because a year end holiday onlyfor the person.

Although there are a number of factors that hinders the growth but these are some of the most

important factors, If Handicraft Industry of Jodhpur will go for mechanization or at least start

participation in foreign trade fairs it will raise exports figures much higher.

35



Future Prospects

The dynamism of handicrafts industry in India is unparalleled - be it the traditional Indian

arts and crafts or a customized version of an overseas art form. Unlike in the past when the

industry was battling to carve a niche in the market, there is a great demand for Indianhandicrafts today that is being nurtured by different government and non-governmental

organizations.

The sector is economically important from the point of view of low capital investment, high

ratio of value addition, and high potential for export and foreign exchange earnings for the

country. The industrial revolution and the increasing productivity had slowed down the

growth and the quality of arts and crafts, but for some decades now, the scenario has changed

and machine-made products no longer attract the people.

Presently handicrafts are being considered as vocational media and it is also opted for style

statement and the leisure pursuit. Today, the crafts and craftspeople have a vital role to play

in modern India – not just as part of its cultural and tradition, but as part of its economic

future.

Questionnaire

1. What is the Market of sales of handicraft’s product in your organization?

(a) domestic

36



(b) foreign

(c) both

2.What is the Availability of Raw Material in your organization?

(a) produced by self

(b) produced on order

(c)vendor contract

3. How would you rate your overall experience to accessablity and responses (of BABA

INTERNATIONAL representative) through phone and e-mail :

4. How you rate the representative ability to help you resolve your issue/need?

5. How you rate the representative on being Courteous & helpfulness?

37

Excellent

Very Good

Good

Fair

Poor

Excellent

Very Good

Good

Fair

Poor

Excellent

Very Good

Good

Fair

Poor



6. Think specifically about the CLEARANCE Department, How would you rate your overallexperience:

7. Think specifically about the SHIPMENT DELIVERY at your doorstep, How would yourate your overall experience:

8. In scale of 1 to 5, where 1 represents ‘ Extremely Dissatisfied ’ and 5 represents ‘ Extremely

Satisfied ’. How would you rate your level of satisfaction with BABA INTERNATIONAL

9. What specifically are you SATISFIED with BABA INTERNATIONAL. Enter your

response below: { E.g., - Safety & security, Excellent tracking, Less transit time }

10. What specifically are you DISSATISFIED with BABA INTERNATIONAL, Jodhpur.

Enter your response below: {E.g, - Commitment not met. etc.}

38

Excellent

Very Good

Good

Fair

Poor

Excellent

Very Good

Good

Fair Poor

1

2

3

4

5



11. How likely are you to recommend BABA INTERNATIONAL to others? The chancesare:

12. In total, how long you have been a customer of BABA INTERNATIONAL :

13. Please list top 3 reasons, initially becoming a member of BABA INTERNATIONAL in

order of importance:

14. Please rate your level of agreement with the following statements. In scale of 1 to 5,

where 1 represents ‘Completely Disagree’ , 3 represents ‘ Neutral ’ and 5 being ‘Completely

Agree’

I believe the company, BABA INTERNATIONAL deserves my loyalty:

Over the past years, my loyalty to the company, BABA INTERNATIONAL has grown

stronger:

39

Excellent

Very Good

Good

Fair

Poor

More then 10 years

7 to 10 years

5 to 7 years

3 to 5 years

Less then 3 years

1 2 43 5



BABA INTERNATIONAL Values people & Relationships ahead of Short-term goals:

*

••• Suggestions ••• ( if any)

Thanks for your valuable feedback.

Bibliography

Books

• Kothari, CR research methodology: methods and techniques.2nd edition new delhi,

vishwaprakashan, 1990

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1 2 3 4 5

1 2 3 4 5



• Jodhpur Handicraft Export Association Report 2008-09

Internet

• www.google.com

• www.wikipedia.com

• www.jodhpur.nic.in

• http://handicraft.nic.in

BI.marketing Mgmt

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